Barr Engineering Company 4700 West 77th Street Minneapolis, Minnesota Phone: Fax:

Transcription

1 Mulch to Megawatts 25 MW Biomass Power Plant Barr Engineering Company 4700 West 77th Street Minneapolis, Minnesota Phone: Fax: Cook Engineering 740 South Syndicate Ave. Thunder Bay, Ontario P7E 1E9 Ph: Fax:

2 Biomass Business Strategy Success = Sustainable Rate of Return IRR % 10 Project life - 25 years Depreciation - MACRS Capital cost - $3335 per KW Fuel cost - $2.50 per MMBTU Tax Credits cent per KW IRR - Unleveraged Staff - 27 personnel Selling price per mwh Reliability = High Capacity Factor = High Returns Utility-grade equipment + Robust design = Highest returns IRR % Capacity Factor 1

3 Why 25 MW Biomass? 25 MW = Optimum Cost h ($) Cos st per mw $3335 per KW Direct Overnight Cost Increasing capital capital cost per KW 25 MW Increasing fuel transportation cost Size Assuming a typical biomass supply for a new power plant site, 25 megawatts is an optimal-sized project with respect to capital costs and fuel supply costs. Smaller projects will be more expensive to build (per KW) and larger projects will require a larger fuel-aggregation radius, which may trend toward unsustainable transportation costs. This determination may not hold for projects with their own special advantages, such as repowering of existing assets or having a captive fuel supply in close proximity. $ Cost Summary O & M $16.10 $75.00 Fuel $32.25 Cost - $ per mwh $50.00 Capital $51.60 $25.00 Agricultural residuals, such as wheat straw, can be part of a biomass fuel supply. $0.00 Cost Components 2

4 Biomass Fuel Flexibility Increased Fuel Flexibility = Reduced Project Risk Closed-loop fuels include: Switchgrass Corn stover Hybrid poplars Canary grass Sorghum Animal waste (turkey litter, etc.) Open loop fuels include: Whole tree chips Hog fuel Wastewood * These fuels can be burned singly or in combination. From Title 26 (Tax Code), Subtitle A, Chapter I, Subchapter A, Part IV, Subpart D, Sec. 45(c)(2): The term closed-loop biomass means any organic material from a plant which is planted exclusively for purposes of being used at a qualified facility to produce electricity. From Title 26 (Tax code), Subtitle A, Chapter I, Subchapter A, Part IV, Subpart D, Sec. 45(c)(3): The term open-loop biomass means - (i) any agricultural livestock waste nutrients, or (ii) any solid, nonhazardous, cellulosic waste material or any lignin material which is segregated from other waste materials and which is derived from (I) any of the following forest-related resources: mill and harvesting residues, precommercial thinnings, slash, and brush, (II) solid wood waste materials but not including municipal solid waste, gas derived from the biodegradation of solid waste, or paper which is commonly recycled, or (III) agriculture sources. 60 Cost of Electricity-fuel only $/mwh Fuel Cost $/MMBTU Biomass fuel options include (top to bottom) corn screenings, malt screenings, mustard screenings, oats screenings, hogged wood fuel, and wheat chaff. 3

5 Environmental Impacts Comprehensive Environmental Evaluation = Straight-forward Permitting Air-Emission-Control Technologies Fabric filter for particulate SNCR for NOx Estimated Air Emissions Profile Ash Disposal 3,300 tpy Land application Concrete amendment (possible) Industrial landfill Wastewater Discharge 25 gpm boiler blowdown Cooling-water blowdown Water Supply 25 gpm boiler-water makeup 215 gpm cooling-tower makeup Project Schedule Realistic Expectations = Achievable Plan Typical biomass power projects will have a sequence of milestones as indicated in the timeline above: The overall timeline will vary depending upon project-specific circumstances, but two-three years is a reasonable outlook. Steps that depend on funding can be delayed by complexity. Construction can be hindered by weather. Environmental permitting is an often underestimated aspect that is getting increasing attention from the public. Allow 6-24 months for permitting. 4

6 Base Plant Equipment Summary Plant Description The biomass plant is sized at 25MW using a bubbling fluid bed boiler and a condensing-steam turbine. Woody biomass is used as the primary fuel with approximately 40% moisture and a heating value of 5,160 BTU/lb. Base Plant Equipment The base plant consists of the following major equipment and facilities: One single-drum bubbling fluid-bed power boiler with back-end emissions control equipment consisting of a baghouse and selective non-catalytic reduction (SNCR); boiler has an operating temperature and pressure of 950 F and 1,500 psig One single-casing, axial-exhaust, steam turbine with generator and associated accessories One natural gas fired auxiliary package boiler sized at 25,000 lb/hr. Two, 100-percent-capacity boiler feed pumps; one motor-driven and one steam-turbine-driven Separate deaerator and storage tank, one closed low pressure and two closed high pressure feed water heaters Two, 100-percent-capacity condensate feed pumps One, water-cooled condenser One, mechanical-draft cooling tower with 2x100% circulating water pumps One, biomass island (four-day supply) consisting of one truck scale, one truck dumper, one stacker, one reclaimer, and a processing area and boiler biomass feed conveyor Control room and administration area Water treatment area Transformers, circuit breakers and bus duct Plant maintenance and laydown areas Building enclosure for the boiler, steam turbine, water treatment, control, administration and wood processing areas Our 25 MW reference plant would require approximately one truck per hour during operating hours or about 7,000 trucks per year of biomass fuel. 5

7 Operating Data and Specifications Notes: [1] Controlled and uncontrolled air emissions include fugitive emissions from a ten-acre biomass storage pile. [2] NOx is controlled through the use of SNCR. [3] PM, PM10, PM2.5 are controlled through the use of a fabric filter. Low-value wood species can be chipped as part of a diversified biomass supply. 6

8 Permitting Topics Biomass crops, such as switchgrass, are an emerging option. Potentially-Applicable Permitting Issues Air Permitting Prevention of Significant Deterioration (PSD): Our 25-MW reference facility specified would require PSD permitting because uncontrolled NOx emissions are estimated to be 293 tons per year. A Best Available Control Technology (BACT) study would be required to determine the control equipment installed, and dispersion modeling would be required to comply with the increment of air quality deterioration allowed by the regulation. If a project locates in a PSD non-attainment area, the applicability thresholds are lower, more pollutants would be regulated and permitting would be more complex, with likely stricter emission limits and a requirement for emission offsets. Note that green house gas (primarily CO2) emission standards for new facilities are pending and may become part of the PSD applicability determination. New Source Performance Standards (NSPS): NSPS are set to regulate criteria pollutants from certain facilities and processes. NSPS Db is a federal regulation that sets standards for boilers with a heat input rating greater than 250 MMBtu/hr. Boiler air emissions will need to meet the NSPS standards if no other stricter limits are imposed on the facility (e.g., BACT limits). New Emission Standards for Hazardous Air Pollutants (NESHAPS or MACT Standards): NESHAPS are standards that set emission limits and determine the type of add-on controls needed for reducing a facility s hazardous air pollutant (HAP) emissions. Note that EPA is proposing new HAP standards for boilers in April 2010 which will likely aim to regulate all types of boilers and fuel. State Specific Rules: Industrial-air-emission regulations vary somewhat from state to state. Some states adopt and cite the federal regulations; others impose stricter rules to further control industrial site emissions. State rules should always be considered during the permitting process. Water Permitting National Pollutant Discharge Elimination System (NPDES): The NPDES program controls water pollution by regulating point sources that discharge pollutants into the waters of the U.S. NPDES permits contain limits for pollutant discharges into water bodies. If a water body is classified as impaired and is regulated by a TMDL limit, it is possible that no increase in specific pollutants will be allowed, thereby significantly impacting the design or feasibility of a project. Storm Water: Stormwater discharges associated with construction and industrial activity require permits under the NPDES Stormwater Program. Facilities are required to develop a stormwater management program designed to prevent runoff from washing harmful pollutants into receiving water bodies or from being dumped directly into municipal stormwater systems. 7

9 General Arrangement Plan 8

10 Electrical Single-Line Diagram 9

11 Heat Balance 10

12 Copyright Barr Engineering Company/Cook Engineering 2010 Contact Information Bruce A. Browers, P.E. Barr Engineering Company 332 W. Superior Street, Suite 600 Duluth, Minnesota Phone: William S. McLean, P.E., P.Eng. Cook Engineering 740 South Syndicate Ave. Thunder Bay, Ontario P7E 1E9 Ph: